Eternity Law International News Andorra rejects banking secrecy since 2018

Andorra rejects banking secrecy since 2018

Published:
June 11, 2021
Share it:

For many years, banking secrecy was observed in Andorra, there was no VAT with income tax, high-class professional workers worked in the banking area. In Andorra, there was a certain kind and independence in making decisions.

France and Spain are located near Andorra, which is an important advantage for this state.

In the last couple of years, the situation in the country has changed significantly. Andorra has undergone a lot of the demands of the world order. First of all, the threats and demands from the European Union played a role.

And because of this, Andorra began to make concessions to the international community. The first step towards such concessions was the creation of a taxation framework, it introduced ten percent taxation on the income of legal entities and individuals, and 4.5% VAT appeared in Andorra.

But, in general, the country has excellent chances for a significant reduction in tax rates.

Banking secrecy in Andorra

At first, the state agreed to exchange data on bank depositors of the EU countries. This immediately reduced the number of investors from European countries.

To date, the state has not only left its signature on the pages of a multilateral agreement on the exchange of banking information. The country plans to start sharing this information.

Starting in 2018, she plans to collect and forward information about those investors who have more than one million USD in their personal accounts.

It is planned that from 2019, in Andorra, such a concept as “Bank secrecy” will cease to exist. One more state will be included in the list of the state with “total transparency” – albeit regarding the issues of bank depositors.

Andorra is now entering a new stage of its development. Traditional means of attracting customers are already not working enough – moreover, they are in little demand and even quite risky.

New techniques are only at the stage of formation. Andorra may well find its application as a country not only for the preservation of banking assets, but also as a tax residence for individuals.

Features of the legislation when registering a company in Andorra

It is easy to register a company in Andorra. In the summer of 2017, legislation came into force in Andorra, which provides for criminal liability for tax violations.

In case of evasion in the amount of 80-160 thousand euros, the offender can be imprisoned from three months to three years. He also undertakes to pay a fine.

If a person has not only evaded paying taxes, there are other state crimes for him, for example, he “laundered” illegal money, then the prison term can be extended by five years, and the amount of the fine will be increased.

Banking secrecy is an outdated concept. New rules also dictated new requirements. For a minimal offense, the severity of punishment increases. So why provoke a provocation of a system that was launched to collect taxes and fines?

Eternity Law International has extensive practical experience, understands the situation well, so with us you have an individualized high-quality service that will help you solve your own problems and tasks.

You can seek advice and services from our experts.

You could be interested

Cayman Islands: a financial offshore for the blockchain industry

The Cayman Islands are a British dependent territory. For the whole world, the Cayman Islands are known as well-developed and well-functioning financial services center, the main segments of which are insurance, banking and trusts management. The islands occupy a relatively small area – 264 square meters, however, more than 100 thousand firms are registered there,...

Criminal Attorney in Spain

This publication will focus on the instance of being trapped in such proceedings, at the time of studying Spain’s legislative sphere can seem intricate. As long as the regional judicial base is complex, rooted in centuries of lawful tradition, and calls for seasoned, competent advocacy. It doesn’t matter whether you are a local resident, expatriate,...

Company registration in Sark

Sark – one of the Channel Islands – is located in the English Channel and belongs to Guernsey. All the land that lies within this island is owned by one person who leases out the plots. Since Sark is a rather small state, until 2008 only about forty companies were opened there. Sark is under...

International Jurisdiction Cases in Germany

The nation was established as an international leader in prosecuting global crimes using universal authority. The judicial establishments deal with people who made a serious illicit actions. Among them are genocides, felonies, and atrocities against innocent people. The place where they were done doesn’t play any role. Country has a cautious approach toward international justice....

Acquire a Hong Kong MSO License – Licensed to Operate Money Services

Hong Kong is not only a global financial center but a place where tradition and innovation in finance meet head-on. If you are already eyeing this city as your base for a money-changer, or a remittance business, know that you are not alone. But before you jump into the industry, there is a very important...

Ready-made company in Ireland

In the contemporary and dynamic global business environment, where opportunities and challenges are intricately intertwined to a greater extent than before, strategic investments often demand a balanced fusion of innovation and practicality. This has given rise to a captivating option: the acquisition of a registered company, commonly referred to as a ready-made company. Among the...

Related posts

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Fill the blank: